Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Outline
1 . Group Overview
2 . October 2023 Summary of financial results
3 . Medium term management plan
4 . Reference data

SENSHU ELECTRIC CO.,LTD.

2

1 . Group Overview

SENSHU ELECTRIC CO.,LTD.

3

Group Overview
Established

November 18, 1949

SharesTokyo Stock Exchange Prime

Capital2,575,200,000yen [US$17Mil.]Type of industry

Wholesale distributor(Industry leader of electric wires general trading company)

No. of employees

819（Average age:40.2）

No. of subsidiaries ７ in Japan and ７ in overseas（China/Taiwan/Thailand/Philippines/Vietnam/USA）
No. of offices

18 in Japan

JapanAsia

SENSHU ELECTRIC CO.,LTD.

USA4Sales Channels of Electric Wires
Electric power

Communications(NTT etc.)(Each electric power
supply companies)

Electric wire
manufacturers

Electric machinery(General manufacturers)

Other domesticdemand(Steel/ship building etc.)

Direct demands
Automobiles(Related companies)
Electricalmaterials

Electrical facilities
materials sales
companies

Construction/
Electrical sales

Electricfacilities

Direct demands

Electricalconstruction
companies

SENSHU ELECTRIC CO.,LTD.

Sales channels of electric wire
Manufacturers
Our sales channels(Electrical materials)
Our sales channels(Direct demands)
Our sales channels(Electrical facilities)
Sales channels of our customers
5Major Customers (image)〈More than 3,700 Customers〉
Electricalmaterials(For Electrical facilities
materials salescompanies)

Electricfacilities(Electrical constructioncompanies)

Directdemands

There are approximately 1,100
major electric material storesthat are members of the union

ElectricalconstructionMore than 60,000 companies nationwide,
including small and medium-sized companies
Mainly large companies

Building/Mansions
Solar Power Generation
Offshore wind power generation facilities, etc.

Manufacturers of machines and robots that produce machine tools, automobiles,
semiconductors, etc.

(End-users)
Machine tools/industrial machines

Automobile facilities

SENSHU ELECTRIC CO.,LTD.

Semiconductor/liquid crystal facilities

6

Customers Composition（Non-consolidated）
October 2023
Power Cables

FA Cables
Power Cables

Covered Cables

Covered Cables
Non-Cables（％）

Transition

Electricmaterials
FA Cables

20.5

18.6

19.0

19.5

19.9

27.6

27.3

27.9

30.6

29.9

47.2

49.8

48.0

44.9

44.9

19/ 1020/ 1021/ 1022 / 1023/ 10

SENSHU ELECTRIC CO.,LTD.

7

Three Business Models
1

JUST IN TIME system

2

Original products

3

Cable assemblies(Electric wire terminal processing）

Electric wires of about 200,000 types

In addition to the sale of electric wires,& difficult to stock in terms of space

we respond to the processing needs ofand theft due to their heavy weight.

small lots and short delivery times,

We have a warehouse floor space ofsuch as electric wires and control

approximately 70,000 ㎡ in Japan

panels with terminals, at 7 of our 18(Sapporo to Okinawa) with overbases nationwide. In addition, group50,000 kinds of products, havecompanies will also develop a systemestablished a JUST IN TIME system.

FA cables (Factory Automation (FA)and work together.

cables used for robots, etc.) with awire manufacturer and sold them as
original products. We accurately
grasp a wide variety of needs and playa role as a technical trading company.

SENSHU ELECTRIC CO.,LTD.

8

2.

October 2023 Summary of financial results

SENSHU ELECTRIC CO.,LTD.

9

Consolidated Financial Highlights
Achievements
・Both sales and profits hit record highs in the quarter
・Stagnating some demand for semiconductor manufacturing equipment and machine tool, automobiles
and construction and electronic sales increased.
・Average copper prices increased 3.1% year on year to 1,232,000 yen/tShareholder Returns
・Fiscal Year Ended October 2023
110 yen per year

(Interim dividend 50 yen/share Year-end dividend of 60 yen/share)
・Fiscal Year Ended October 2024

Initial forecast: 120 yen per year (Dividend increase of 10yen)

Stock Status
・Share offering and change of major and largest shareholders

SENSHU ELECTRIC CO.,LTD.

10Consolidated income statements overview（Unit : million yen、％）

2022/10

Composition
ratio

2023/10

Composition
ratio

Increase or decrease

YoY

113,633

100.0

124,967

100.0

11,33410.0

17,09315.0

18,680

14.9

1,586

9.3

administrative expenses

9,629

8.4

10,313

8.2

684

7.1

Operating profit

7,464

6.6

8,366

6.7

902

12.1

Recurring profit

7,894

6.9

8,770

7.0

875

11.1

Profit attributable to owners

5,314

4.7

5,920

4.7

606

11.4

Net sales
Gross profit
Selling, general andof parent
Average copper price(Thousand yen/t)

1,195

1,232

SENSHU ELECTRIC CO.,LTD.

37

3.1

11

Consolidated net sales Quarterly trends

SENSHU ELECTRIC CO.,LTD.

12

Sales by Product(Non-consolidated)（Unit : million yen）

2022/10

Composition
ratio

2023/10

Composition
ratio

Increase or decrease●FA Cables

36,61834.2%

38,859

33.0%

2,241

6.1%

●Power Cables

37,86535.3%

43,438

36.9%

5,573

14.7%

●Covered Cables

10,371

9.7%

11,444

9.7%

1,074

10.4%

●Other Cables

5,436

5.1%

6,145

5.2%

710

13.1%

●Non-Cables

16,92915.7%

17,883

15.2%

953

5.6%

Total

107,221 100.0%

117,772 100.0%

10,551

9.8%

37

3.1%

Average copper price(Thousand yen/t)

1,195

1,232

SENSHU ELECTRIC CO.,LTD.

13

Forecast of consolidated financial results（Unit : million yen,％）2023/10

Composition

2Q

ratio

2024/10
２QForecast

Composition
ratio

YoY

2023/10

Composition
ratio

2024/10
Forecast

Composition
ratio

YoY

Net sales

61,851 100.0

64,500 100.0

Operating profit

4,304

7.0

4,300

6.7 △ 0.1

8,366

6.7

8,700

6.6

4.0

Recurring profit

4,482

7.2

4,400

6.8 △ 1.98,770

7.0

8,900

6.8

1.5

2,994

4.8

3,000

4.7

0.2

5,920

4.7

6,150

4.7

3.9

2.2

1,232

Profit attributable toowners of parent
Average copper price(Thousand yen/t)

1,223

1,250

4.3

124,967 100.0 131,000 100.0

SENSHU ELECTRIC CO.,LTD.

1,250

4.8

1.5

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Consolidated Balance Sheet overview
・Total assets were 101367 million yen, an increase of 5,985
million yen from the end of the previous fiscal year.
（Unit: million yen）

2022/10

Increase or

2023/10decrease

Total current assets

67,91070,8302,920

Total non-current assets

27,471

30,537

3,065

Total assets

95,381

101,367

5,985

Total current liabilities

45,92247,713

1,790

3,059

2,939

△ 120

Total liabilities

48,98250,652

1,670

Total shareholders' equity

45,066

48,764

3,697

Total net assets

46,39950,714

4,315

Total non-current liabilities

Total liabilities and netassets

・Current assets were 70,830 million yen, an increase of 2,920
million yen from the end of the previous fiscal year due to anincrease in cash and deposits, receivables and inventories.
・Fixed assets were 30,537 million yen, an increase of 3,065
million yen from the end of the previous fiscal year due to anincrease in property, plant and equipment due to the openingof the Hokuriku Branch.
・Total liabilities were 50,652 million yen, an increase of 1,670
million yen from the end of the previous fiscal year.
・Current liabilities were 47,713 million yen, an increase of
1,790 million yen from the end of the previous fiscal year due
to an increase in purchase payables.
・Fixed liabilities were 2,939 million yen, a decrease of 120
million yen from the end of the previous fiscal year.
・Total net assets were 50,714 million yen, an increase of
4,315 million yen from the end of the previous fiscal year. The

95,381

101,367

5,985

increase was due to an increase in retained earnings due toretained earnings.
Equity ratio:49.7%(End of the first semester:48.4%､+1.3pt)

SENSHU ELECTRIC CO.,LTD.

15

Shareholder Return Policies
Dividend（Forecast of 120 yen per year）

1

2
3

Setting stable dividend payment as our basic policy, we arepaying dividends considering and examining business results
and retained earnings, etc. comprehensively. Annual dividend
increased by 40 yen in real terms
Fiscal Year Ending October 2023 is interim dividend:50
yen, year-end dividend: 60 yen
Fiscal Year Ending October 2024 is interim dividend:60
yen, year-end dividend: 60 yen

Treasury stock acquisition and retirement
We acquired treasury stock in order to improveshareholder returns, improve capital efficiency,
and implement flexible capital policies in responseto changes in the business environment. Also we willretire treasury stock for the same reason.
Stockholder benefit program(Once a year (at year end), 1 unit (100 shares) or more)

Less then 1 year : Our original QUO card (1,000 yen)
One year or more : Our original QUO card (2,000 yen)
SENSHU ELECTRIC CO.,LTD.

・ Total number of acquire shares
270,000 shares (limit)
・Total acquisition amount
1,000,000,000yen (limit)（Acquisition period2023/10/10 to 2024/4/30）

・ Total number of retired shares
1,500,000 shares・Total number of issued shares after
retirement
19,500,000 shares（Scheduled retirement date 2023/12/14)

16

3. Medium term management plan

SENSHU ELECTRIC CO.,LTD.

17

Medium-Term Management Plan:SS2026
Final Year October 2026

Consolidated net

Recurring profit

ROE

10 billion yen

More then 10.0％sales
150billion yen（Unit：million）+20%up

In order to achieve the target ofSenshu Electric Group Mediumterm Management Plan announcedon December 8 2022,which ends
in October 2025, two years aheadof schedule, we have formulated+14%upSenshu Electric Group Mediumterm Management Plan with thefiscal year ending October 2026

SENSHU ELECTRIC CO.,LTD.

18

Medium-Term Management Plan ：SS2026
Increase sales in the direct demand sector by developing original products
and strengthening the processing sector

New construction
Review of production lines

Improvement of the Just in Time system
Strengthening of sales in Tokyo and surrounding Kanto areas,and expansion of share for the other area

EV/RenewableenergySales products other than electric wires including own brand ones anddevelopment of new fields

ESG/SDGs

Strengthening of global deployment(Improvement profitability of the Group)

Sustainability Management

Semiconductor/Automated

AI・IoT

Inbound Expo
インバウンド、万博・IRIR Construction
建設需要
demand

銅価高騰

Promotion of the Senshu Transformation Project
SENSHU ELECTRIC CO.,LTD.

19

Medium-Term Management Plan ：Capital Expenditures andDepreciation● Hokuriku BranchOpen in May 2023
Ishikawa-ken Kanazawa-shi Kimachi
Higashi 1176-3〇 Okinawa Building
Construction Siteacquire 2023

〇 Solar power landacquire in 2023

〇 Nagoya FA Center
SENSHU ELECTRIC CO.,LTD.

Will open in 2025

20

Medium-Term Management Plan ：New Fields／Abil heater
Subterranean heated vinyl lines for agricultural use.
Abil heater

Contributes to CO2 emission reduction by directly heating soil inplastic greenhouses, etc., and increases harvest turnover (cycle)
by accelerating the speed of growth.

Contribute to the SDGs
Decarbonization and energy savings compared to boilers that use fuel.

Senshu Electric Nagakute House
Growing tomatoes and strawberries in Nagakute City, Aichi Prefecture,

Annual sales of 1 billion yen
in agribusiness by 2027

using aviru heaters.

OtherExhibit at agricultural trade shows.
Developing a hot air heater.

SENSHU ELECTRIC CO.,LTD.

21

Medium-Term Management Plan：Sustainability ManagementMateriality

ESDGsTOPICS

Reduction of CO2 emissions●Feb. 2023

Environmental conservation

Response to climate change

Invest in Green Bonds(Osaka city,etc)

activities

Compliance with environmental laws

●Apr. 2023

and regulations

Published 2022 Environmental Report

Long-Term Goal

Carbon neutrality by 2050
Medium-Term Goal

50% reduction comparedto fiscal 2013 by 2030

Strengthening information security
Strengthening quality control system

Respect and consideration forhuman rights

S

Creating a rewarding work
environment
Stable supply of goods andservices

Improving engagement with employees andbusiness partners●Oct.2023
Acquired Solar Power Generation Site

Promotion of health management and（Mie prefecture)enhancement of health and safety●Dec.2023 （plan）

Promoting diverStrengthening information
security

Information Disclosure Based on TCFD

Strengthening quality control system(strategy)

Improving engagement with employees and●Certification of ”Excellent Healthbusiness partners

Management Corporation 2023”

Promotion of health management and50％
CO2
emis
sions

2013

CO2emis
sions

02030

2050

enhancement of health and safety
Promoting diversity

Compliance with laws and regulations

G

Establishment of a governanceThorough compliancesystem

BCP (business continuity plan)●Jan. 27, 2023
Corporate Governance Report

Maintenance of the system

SENSHU ELECTRIC CO.,LTD.

22

4. Reference data

SENSHU ELECTRIC CO.,LTD.

23

Consolidated income statements overview（Comparison with previous FY）（Unit : million yen、％）

2022/102023/10

Increase or decrease

113,633

100.0

124,967

100.0

11,334

10.0

Cost of sales

96,53985.0

106,287

85.1

9,747

10.1

Gross profit

17,09315.0

18,680

14.9

1,586

9.3

9,629

8.4

10,313

8.2

684

7.1

7,464

6.6

8,366

6.7

902

12.1

Non-operating income

533

0.4

517

0.4

△ 16

Non-operating expenses

1030.1113

0.1

107,894

6.9

8,770

7.0875Extraordinary incomeーーーーー

Extraordinary losses

150.0

30.0

△ 12Profit before income taxes

7,878

6.9

8,766

7.0888

Income taxes - current

2,571

2.3

2,788

2.2

217

Income taxes - deferred

△ 63

△ 0.1

△0△0.062

Profit

5,370

4.7

5,978

4.8607

55

0.0

57

0.1

1

5,314

4.7

5,920

4.7606

11.4

37

3.1

Net sales

Selling, general andadministrative expenses

Operating profit

Recurring profit

Profit attributable
to non-controlling interestsProfit attributable to owners ofparent
Average copper price(Thousand yen/t)

1,195

1,232

SENSHU ELECTRIC CO.,LTD.

11.1

11.3

11.3

24

Consolidated Balance Sheet overview（Unit: million yen）

2022/10

Increase or

2023/102022/10decreasedecrease

Cash and deposits

27,16528,534

41,21443,0501,836

Notes and accounts receivable - trade22,572

23,313740 Short - term borrowings

631

691

59

Electronically recorded

10,831

11,302471 Current portion of bonds payable

11464

△ 50

239

△ 14 Current portion of long-term borrowings

205△ 14monetary claims - operating

Securities

1,368 Notes and accounts payable - trade

Increase or

2023/10

6,575

6,914

339 Income taxes payable

1,840

1,561

△ 279

Work in process

250

247

△ 3 Provision for bonuses

767

773

5Raw materials and supplies

238

257

18 Other Current liabilities

1,332

1,566

233

Other current assets

253

253

△1Total current assets

67,91070,8302,920 Total current liabilities

45,92247,713

1,790

Property, plant and equipment

17,77920,3552,576 Bonds payable

10742

△ 64

339

303

△ 36 Long-term borrowings

6054△59,3529,878

526 Retirement benefit liability

2,249

2,120

△ 129

Other non-current liabilities

64071978

3,065 Total non-current liabilities

Merchandise

Intangible assets
Investments and other assets

Total non-current assets

27,471

30,537

3,059

2,939

△ 120

Total liabilities

48,98250,652

1,670

Share capital

2,575

2,575

－

2,690

2,757

67

Retained earnings

44,25548,574

4,318

Treasury shares△ 4,454△ 5,142△ 687

45,066

48,764

3,697

1,056

1,565508

3859

20

Capital surplus

Total shareholders' equity
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total assets

95,381

101,367

5,985 Total liabilities and net assets

SENSHU ELECTRIC CO.,LTD.

237

326

88

46,39950,714

4,315

95,381

101,3675,985

25

Electric wire and copper price
There are two types of electric wires: copper and aluminum wires, and most of the wires we deal
with are copper wires. Therefore, the market price of copper is important for the sale of electricwires.
The domestic copper quotation is determined by JX Nippon Mining & Metals based on the international
copper quotation determined by the London Metal Exchange (LME) and the exchange rate.
〈Copper price and monthly sales (non-consolidated)〉

SENSHU ELECTRIC CO.,LTD.

26

Dividends and Dividend Payout Ratio（Unit：yen,％）(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and the dividend payout ratio is calculated on the assumption that the stock split was conducted at the beginningof the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

27

Trends in shareholder return(Dividend+treasury stock)
Implementation of continuous
shareholder returens through dividends+ treasury stock(Unit:million）

SENSHU ELECTRIC CO.,LTD.

28

Trends in Main Indicators Red = FY10/2024 forecast Blue = Results
EPS (yen)

DOE(%)

ROE(%)
4.0

2.8

4.1

2.0
0.0
22/10

23/10

24/10
(forecast)

BPS(yen)Equity ratio(%)

Shareholder return rate(%)
60.0

43.0

45.3

48.1

22/10

23/10

24/10

40.0
20.00.0(forecast)(Note) The Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022,
and calculated are based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

SENSHU ELECTRIC CO.,LTD.

29

Thank you for your attention.

Stock code : 9824

SENSHU ELECTRIC CO.,LTD.

Notes on the content
None of the information on this document constitutes a solicitation to purchase or sellshares belonging to our company.
Please note that, due to various factors, future performance may differ from theseforecasts. The information contained within this material should be checked against
information obtained through other means and utilized at the user's discretion.
In no event shall our company or its suppliers be liable for any damages resulting fromthis information. We ask that users make investment decisions at their own discretion.
Furthermore, please be aware that the information presented here may not always reflect
the latest information available.

SENSHU ELECTRIC CO.,LTD.